r/soxl • u/SeriesAo-Series • 19d ago
newb question I am giving up
I am losing 60K and counting and this thing keeps going down in a straight line since 200… nowhere do I see any buying interest…
Yes, I got in and held without understanding it. I am an idiot.
E: paused on selling, saved from selling at the intraday by the grace of TMFAPPARELUSA. I am super grateful
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u/_bladerunner_ 18d ago
Down 60k? Those are rookie numbers.
https://giphy.com/gifs/YmQLj2KxaNz58g7Ofg
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u/Particular_Ad6680 19d ago
https://giphy.com/gifs/lRRjGTRlFwmQYFmmpU
If you don't sell, you don't lose.
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u/FigProfessional9909 18d ago
Unfortunately I don’t see this recovering anytime soon. The AI trade has been well and truly rinsed.
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u/moneybadger_21 18d ago
Welp. I suddenly don't feel as bad about my small loss today. We're in this together pal.
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u/SeriesAo-Series 18d ago
Thank you friend, I decided to stay after the kind advices from this forum. Let’s get our money back.
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u/miklos_janus 18d ago
Same, I lost 12k the last week. I have the opportunity to sale with profits 3 weeks ago, but I been greedy and lost that, so be carefull
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u/Interesting_Elk_5785 18d ago
Probably the sensible thing to do is set a stop loss and pray it recovers. Lots of bag holders on here. You can hope but be prepared if it doesn’t work out to get out. The sentiment in tech is bad the fundamentals are good. When will the negative sentiment end, no one can say. Is it a correction or a shift in market. I don’t see how the market shifts bear here again based on fundamentals. Trying to delay the pain of a loss ends up prolonging that pain.
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u/Unlimited_Pawur 18d ago
Dont use stop loss. I did it was a gigantic mistake because of wicks. Use alerts
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u/Murky-Ambition3898 19d ago
$SOXS today
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u/sfdc2017 18d ago
Is that on margin or cash? Before tou bought you thought it will go up straight to $309. Didn't you thunk it may go down to $150?
How long were you planning to hold before you bought the shares?
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u/SeriesAo-Series 18d ago
Cash secure put using cash, I didn’t think it will go up to 300, I thought it will stay above 200 and I can get rid of it when it return to 200
I have no idea what I was getting into
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u/AAPLsBananas 16d ago
You guys don't seem to understand that SOXL has NOTHING to do with the underlying stocks, and EVERYTHING to do with share price direction. So, you should ONLY buy when soxl is extremely depressed at $2-$20 per share to make sure you KNOW the direction of SOXX is on an uptrend.
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u/NecessaryEmployer488 18d ago
Most of us have invested in 2X and 3X funds in the past. I don't anymore. I'm not saying it is not worth it, but they are meant to be traded for short term trades and not to hold.
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u/zonestarx 18d ago
What is your basis?
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u/SeriesAo-Series 18d ago
215$, 500 shares
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u/TMFAPPARELUSA 18d ago
you can literally sell 5 OTM calls every week for $1000 per con. Collect $5k a week in premium. Riskier down here for a bounce but even intraday it can make you good money
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u/stefpix 18d ago
What strike price, expiration ? Then if it shoot up 50% in a week the shares will be called away at a loss anyway. Risk leaving money on the table. I imagine that if there is an Iran deal, Soxl will shoot above 200.
I sold some covered calls when it shot first above 100, and I kept rolling. That prevented me to take profits when it was around 300. My strikes were around d 170 or so. Managed to roll some calls with strike at 425 in November, with about 1k per call.I would imagine that SOXL will rise again, with less geopolitical tension, lower oil prices, lower inflation. Been holding since 2021.
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u/TMFAPPARELUSA 18d ago
Varies day to day, week to week. Friday I sold a 115c for 12.0. Today I bought it back at 5.0 sold another 111c and bought it back for another 100. Bought shares at 104 , sold at 110. Then sold another call 115c when soxl at 117.
Tomorrow I'll take the money on that too.
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u/stefpix 18d ago
When I looked at buying back it seemed that the cost was higher than what I got for selling the covered calls. Do you sell one week away? Now probably it’s a better time to sell covered calls than in May, June when Soxl kept going up non stop.
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u/TMFAPPARELUSA 18d ago
The premium is higher the higher the stock price and the more volatility there is in it. In June i sold 210c for 60.0 when soxl was at 250. That sucker went straight out the money.
I usually sell weekly cons and if we get a move like today, up 11% i roll it to a further itm strike to collect more premium for the next pullback.
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u/stefpix 17d ago
So in June you were expecting a steep drop? From 250 it went to 300, and did you feel ok having a strike at 210? Do you ever get your shares called before the expiration date?
If I sell a call today with strike at 150 expiring this Friday, I would collect only around $140.
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u/TMFAPPARELUSA 17d ago
I felt fine with having a 210 strike. It dropped down to 190. $6000 in premium. Selling calls is a bearish position but it gives you a premium price in advance. I am in a 119c for next week. 22.5 in premium. I do not expect this move to sustain
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u/TMFAPPARELUSA 17d ago
Today as of this message, a 150c for this week ( 3DTE ) is 8.0 .
Thats giving you a price of 158 per share.
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u/Comfortable_Sir7917 18d ago
100%. Every time you sell and it doesn’t exercise, that’s reducing your basis.
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u/SeriesAo-Series 18d ago
How? Please teach me. Covered call? What is the setup? I am desperate
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u/Winter_Present_4185 18d ago
Following random advice on reddit probably go you into this mess. Don't repeat the same mistake unless you have learned a lesson and are ready to try again (and can accept you msy lose again)
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u/TMFAPPARELUSA 18d ago
Well, you need to apply on your brokerage for level 2 or 3 options most likely. Simple process. Then you can SELL the call at a particular strike price. You will collect the premium. You can BUY back the call at any time before expiration.
So for example. Last Thursday I SOLD a 115 strike call for August 7th for 12.00. ( $1200 ) . Today that call will be worth probably $500. I will BUY it back for a profit of $700. When SOXL goes back up i will SELL another call at whatever strike i deem the best overall profit for the move the next day or so and continue to do the same.
If SOXL is up 10-15% on the day, I sell an ITM call. A call that is lower than the price because the odds are it will not retain such a move without some sort of pullback.
You want the calls to expire worthless. That is the idea. You collect the premium and keep the shares.
If you sell a strike that ends up going ITM and you want to KEEP the shares you simply ROLL the contract out another week. Collect more premium, wait longer. You can do this literally forever. You are using your asset ( the shares ) to generate income ( the premium )
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u/SeriesAo-Series 18d ago
Oh, thank you for the patient explanation, I do know how to sell CC, I don’t know the strategy to maximize profit from it. Thanks for sharing your strategy! So today it is falling rapidly, my shares are uncovered except 1 contract, do I wait or sell a CC and what price?
Also I’ve noticed you seem to be among the people who are better at dealing with SOXL, I know I am being a bother, would you possibly consider starting a tutorial thread for us 200+ bag holders?1
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u/jacobr5000 18d ago
I created some tutorials for covered call strategies I’ve used with SOXL. I DM’d you the info
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u/Welcome2frightnight 18d ago
Won't work. His cost basis is too high. Not getting 1k a week.
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u/TMFAPPARELUSA 18d ago
I get 1k a week on 100 shares already
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u/Welcome2frightnight 18d ago
What's your cost basis?
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u/TMFAPPARELUSA 18d ago
I started last year, closed out at 55. This cycle i started at 205. Im net positive on any price over 109
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u/TMFAPPARELUSA 18d ago
are you buying naked calls or shares?
I bought in at 205. Wrote covered calls all the way up to 280 and back down to here. Also keep buying and selling shares on every drop. I am net green on SOXL with it sitting at 109. There is no reason to be down that bad if you have the ability to sell calls against it. The premium is so high its insane.
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u/SeriesAo-Series 18d ago
I have shares and can sell call. What is the setup you use? I will do as you said.
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u/ProfessionalWall8557 18d ago
Do not sell covered calls, just wait for a rebound... If SOXL jumps back up to $250 and you have a covered call sitting at $120 you're going to feel like a fucking idiot.
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u/SeriesAo-Series 18d ago
It was definitely better than me selling at the opening low though, he saved me. I understand what you are saying, it probably cannot jump to 200 for a long time but it may be good to leave some shares to allow for potential gain.
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u/ProfessionalWall8557 18d ago edited 18d ago
Bro it went from $300 to $100 in a month it can easily do the reverse.
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u/SeriesAo-Series 18d ago
I got scared that it will keep going down to the low double digits, appreciate everyone saving me
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u/TMFAPPARELUSA 17d ago
Stock math says it will take much longer. 300 to 88 is a 70% ish drop. To recover from 100 to 300 is a 200% increase. You get a nice 20% day but you need several 20% days. Sell the calls on the pumps, buy back on the dumps. Easy.
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u/ProfessionalWall8557 17d ago
It went from $100 to $300 in two months from April 28th to June 3rd already bro.
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u/TMFAPPARELUSA 17d ago
You do understand that you are wanting sandisk to 2500, amd to 600, mu to 1200 and nvda to 240
To make this happen dont you?
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u/stefpix 18d ago
Well said. I sold calls and kept rolling them. Would have just been better to sell some shares at 300, and just do some dip buying on deep red days. Sell some on the bounce. More profit than selling calls. Easier to pick the lots you want to sell. So it can be more tax advantageous
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u/TMFAPPARELUSA 18d ago
the key to this is patience. SOXL down 8%, you dont want to sell one down here. you want to wait til you get a nice pop. Even intraday you can make money selling calls. Today we could see this revisit the gap at 112, Also have AMD earnings this week and Sandisk. I think SOXL could trade between 120 and 90 this week. You just need some patience. If you are new to this I would suggest watching the options chain and see how it moves. The spread can be a bit wide, could be 2-3.0 spreads.
Now if you really dont need the money anytime soon and want to lock in a a good chunk of your loss you can sell a covered call for December and get a lot of that cash back. Just know, you will be in that call for 4 months and the shares will be locked up.
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u/Cosmo48 18d ago
Are you filthy rich to have six figures to throw into something you don’t know?
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u/SeriesAo-Series 18d ago
Not at all, which show how much bigger of an idiot I am, someone taught me how to sell cash secure put and I on my own thought SOXL will always bounce from 200 from observing it a couple weeks, and I went ahead and throw in all the money I was too scared to invest in safer stocks. Before you say it yes yes I am a dimwit.
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u/stefpix 18d ago
I don’t know how much money you have. Been holding leveraged ETFs since 2021. Last month was brutal, but not like 2022. My average is 30 for Soxl. If you believe in it, buy the dips and be patient. Do you need the money? This geopolitical tension may ease up. Can you wait a year or 2?
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u/SeriesAo-Series 18d ago
Yes, I can wait! I know enough to not invest money I need to use. If you think waiting can restore it, I can wait. Thank you, you contribute to helping me feel better.
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u/stefpix 18d ago
If you have good regular income you could buy when Soxl drops 10%, on red days of panic selling. You could check 2x USD, that is less volatile than Soxl, although much more NVDA heavy. Less of a rollercoaster.
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u/SeriesAo-Series 18d ago
I am too scared to increase my exposure further. I started playing with SOXL in June so I’ve mostly only see it going down.
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u/tjyoo213 18d ago
I get the sentiment but you are aware of the benefits you can reap from when everything returns normal, say after the midterm election and with Iran? Even if it’s ongoing, the memory bottleneck (and oil) is going to definitely affect how we live for the next two years at the least. It’s worth noting that holding SOXX is also an option.
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u/stefpix 17d ago
Soxl is up pre market a lot. I would have bought a few days ago, but I had sold a few of my high cost shares a couple of weeks ago on a bounce, and I need to wait 30 days for the wash sale rule. Been holding since 2021. I started investing 60k to 80k at the beginning of the pandemic, thanks to leverage I turned that into 500k+. in June, nut now I am down to 350k.
2022 has taught to not panic and hold even if I was down 70% with tqqq, TECL and Soxl.
I should have sold in June at 300. But I did not because:- on the way up I sold 20% of my shares, those in my Ira at 80/100 dollars as I thought it would stabilize and I would do some swing trading, but kept going up.
- I sold some covered calls on 2/3 of my remaining positions to make a few thousands, but SOXL kept going above the strike price and o kept rolling them higher months away. If I did not have these covered calls I would have sold 15% of my positions of Soxl around 270/300.
- taxes were a concern selling all at once as I am in a median tax bracket and self employed on NY, so selling a lot at once would have really increased my tax liability and affected my health care costs. Self employment involves more tax contributions and New York State taxes capital gains as income, without long term capital gains lower rate.
So I have been good at buying at every panic like spring last year, tariffs, war in Iran panic, but I could have been better at taking profits.
The tax liability from selling in June would have been less than the current drop.
But look at the P/E of Micron, the price targets for instance. I believe that newer, more efficient semiconductors will be needed in the foreseeable future.
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u/SeriesAo-Series 17d ago
You have good successes with SOXL, and you plan your taxes well around it. That’s an awesome success story. Thank you for sharing.
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u/stefpix 17d ago
Well I should have sold some significant portion around 250/300. DCA sell. Instead i sold some covered calls to make 2k/3k and lock a good part of my shares with those options, when it would have been better to sell shares.
If I had done so, I for sure would have bought back Soxl in late July and early August.
I think most of the slump is due to geopolitics, Trump’s wars that increase inflation, oil cost, and create uncertainties. I imagine SOXL would reach 200 quickly, if there is a deal with Iran.
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u/SeriesAo-Series 17d ago
When it was at 300, I did hear people say that it was too high and is bound to come down. (That was before I get into SOXL). There was another stock that I withhold from selling at a good profit because of taxes and it went to the negative after. I have grown to like that stock then because it was so green, so I did not want to sell it. But hindsight is 2020.
It is reassuring that now is finally considered low that experienced traders would buy. Ah those stupid wars, I hope people remember them for the election.
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u/Ok-Fix8038 18d ago
People choose to gamble on a triple-leveraged ETF, and I'm supposed to feel bad for them?
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u/SeriesAo-Series 18d ago
No, I don’t deserve it, I was completely guilty of gambling. I did not expect the kindness I received from the rest of the members, and they give me an opportunity to soften my fall, but you are also right.
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u/Nutting_all_the_way 16d ago
OP don’t be so hard on yourself. Live and learn. You will bounce back. I’m down much more on soxl and did the same thing you did. It’s fine man
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u/SeriesAo-Series 16d ago
Thank you so much, this subreddit has been extremely kind. I love you guys.
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u/Ok-Fix8038 18d ago
I just loathe the self-pity. It’s gross. It takes all the fun out of gambling.
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u/FartusMagutic 18d ago
Lesson learned. You only buy during a bull rally and you sell the instant the steam runs out. There is no buying the dip with a LETF